Deal structure - Posted by Maurice (Ca)

Posted by Steve on June 08, 1999 at 15:18:38:


Do you have a mentor or partner. I would recommend you find one locally.

My 2 cents,

Deal structure - Posted by Maurice (Ca)

Posted by Maurice (Ca) on June 07, 1999 at 15:29:41:

Hello all:

Here’s another deal we’re working on:

SFH 3br/2ba/2car garage;
Asking $76,000;
Market value of $95,000;
PITI is $680;
Only has minor cosmetic repairs totalling about $2,000;
Wants $9,000 down & I’ll take over subject to.

He’ll carry a second of $10,500 as interest only for 3years balloon: He’ll discount pre-payment 1st year with $2,000 discount; $1,000 discount 2nd year; he DOES want $9,000 cash down payment & is not negotiable on that; he’s also an investor who claims to own many properties, but is selling them because he’s tired of holding. Fair market rents in the area are between $725-$850.

He’ll be faxing me the loan details, but from what I can gather it seems like a great opportunity. But 2 things: the $9,000 down payment & should I be leary of a seasoned investor on this type of deal?

My strategy was to get some type of hard money loan for the down & either l/o or do a wrap loan. Hopefully get non-refundable option/deposit from t/b to make up all or some of the down.

Any suggestions would be great.

Thanks as usual!!

Re: Deal structure - Posted by Will

Posted by Will on June 08, 1999 at 13:48:36:

If this is such a great deal and another investor is getting rid of it, doesn’t that make you a little bit suspicious? I make it a point to never buy property from another investor. If an investor is selling it, that means one of two things: It is not a good deal after all, or the investor does not know what he is doing (in which case, how would he know he had a good deal to sell you if he did not know what he was doing?).

My advice is to keep looking for real homeowners to buy from.

Point well taken! - Posted by Maurice (Ca)

Posted by Maurice (Ca) on June 08, 1999 at 14:05:27: